INDUSTRY RIVALRY: The above shows the different market share of the different firms such as Airtel which holds 28% of the total share being the highest , Vodaphone – 23%, Idea -15% , Rcom-8.2% , Tata – 8.8% , BSNL/MTNL – 609%, Aircel -4.8% , Uninor-2.4%, Others – 2.3%.The rivalry among the different companies is high and the cost difference is not much so the customers have options in choosing their connection. POTENTIAL ENTRANTS: Telecom sector is one of the fastest growing sectors. This is due to strong competition that has brought down tariffs and simplification of policy environment that has promoted healthy competition amongst various players. Average revenue per user for big players is around Rs. 110 – Rs. 120 – Reliance has lesser ARPU because major of its subscribers are low end customers Revenue Market Consumer Market ARPU share share AIRTEL 29.1% 19.8% 114.2 Reliance 8.2 % 16.7% 45.2 IDEA 15% 12.3% 114.9 Market leader AIRTEL Market Challenger Reliance, Vodafone, BSNL Maket Follower TATA, IDEA. Existing telecom companies are coming up with continuous growth strategy due to high competition. Future Prospects AIRTEL Airtel plans to set up 3000 more towers to enhance their rural coverage and will now focus on rural and semi-urban areas RCOM Peak investment phase is over. RCOM continues to be free cash flow positive and this trend to continue in succeeding years.

BUYERS: The individual buyers don’t have any competition among themselves but enterprise customers like IT or banks do have. Enterprise customers generate major part of the revenues for any telecom companies like Reliance, Airtel or Idea which means higher buyer...

...Competitiveness in the light of Porter’s FiveForces |
by |
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Hassaan Jamshed HND in Business Studies (2012-13) |
7 Oct 2012 |
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Contents
Introduction PortersFiveForces
Threat of New Entrants
Bargaining Power of Customers
Bargaining Power of Suppliers
Rivalry among Existing Firms
Threat from Substitute Products
Conclusion
Introduction
In 1977, HH Prince Sultan Bin Mohammed Bin Saudi Al Kabeer saw that the domestic market was growing and to satisfy its needs, Saudi Arabia’s traditional dairy farming industry had to improve itself. He guided and financed for his vision to become a success which led to many agricultural projects being launched. Initially it was just fresh milk and Laban processing, which later came to be an incorporate modern dairy farm and many exquisite processing factories.
Porter’s FiveForces
Michael E. Porter (a young Harvard university associate professor) revolutionized the business strategy field by writing an article in the Harvard Business Review in 1979. The concept which later on was named after the professor has transformed industry competition since then and continues to be the most important factor in understanding and coping with competition in the market. It tells us where power lies in a business situation. The extended rivalry that results from all fiveforces...

...-1-
Beyond Porter – A Critique of the Critique of Porter
The writings of the American managementguru and Harvard-Professor Michael E-Porter are considered to be among the most influential of their subject – and among the most critiqued ones. Porter had a lasting influence on strategic management with his books about competitive advantages on industry level and on global level, which were written in the eighties. Porter’s models like the Five Competitive Forces, the Value Chain or Porters Diamond have become standard equipment of the manager’s toolbox. Porter’s ideas became more and more subject of critique under the impression of the developing Internet economy during the last decade. Critics point out that economic conditions have changed fundamentally since that time. The rise of the Internet and of various e-business applications has strongly influenced nearly all industries. In fact, Porters theories base on the economic situation in the eighties. This period was characterized by strong competition, cyclical developments and relatively stable market structures. Porter’s models focus on the analysis of the actual situation (customers, suppliers, competitors etc) and on predictable developments (new entrants, substitutes etc). Competitive advantages develop from strengthening the own position within this FiveForces-Framework. Hence, these models cannot...

...Running head: The Theory of Porter’s FiveForcesPortersFiveForces
Kimberly S. Lawson
1018525
American Military University
04 October 2012
Abstract
Michael Porter’s FiveForces model is a very sophisticated theory for calculating a company's economical standing. Michael Porter established a structure that shapes a structure that monitors an industry and is often used in strategic planning. Porter's detailed fiveforces model is one of the most frequently used business strategy tools and additional ease and effectiveness to havemany situations within in America and within global businesses.across businesses around the world.
Assessing Porter’s Five Force’s
Michael Porter established a structure that develops a corporation as being subjective by the fiveforces. The tactical business manager in search of developing an advantage over competitors can employ this structure to gain a better understanding of the industry perspective on which the company operates. The Porter’s FiveForces model is a straightforward but a vigorous instrument for understanding where the power is controlled in any business condition. This is very helpful to assist each business to...

...Michael Porter's 1979 framework uses concepts developed in IO economics to derive 5 forces that determine the attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macroenvironment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.
Four forces -- the bargaining power of customers, the bargaining power of suppliers, the threat of new entrants, and the threat of substitute products -- combine with other variables to influence a fifth force, the level of competition in an industry. Each of these forces has several determinants:
The bargaining power of customers
buyer concentration to firm concentration ratio
bargaining leverage
buyer volume
buyer switching costs relative to firm switching costs
buyer information availability
ability to backward integrate
availability of existing substitute products
buyer price sensitivity
price of total purchase
The bargaining power of suppliers
supplier switching costs relative to firm switching costs
degree of differentiation of inputs
presence of substitute inputs
supplier concentration to firm concentration ratio
threat of forward integration by suppliers relative to the...

...Substitute products
3.Bargaining power of customers
4.Bargaining power of suppliers
5.Entrance barriers
6.Usefulness of the Fiveforces
7.Limitations of the fiveforces Model
8.Porter in the airline industry/Ryanair
Introduction
The model of the Five Competitive Forces was developed by Michael Porter in his book Competitive Strategy: "Techniques for Analyzing Industries and Competitors" in 1980. Since that time it has become an important instrument for analyzing an organisations industry structure in the strategic processes. Porter's model is based on the idea that a business strategy should meet the opportunities and threats in the organisations external environment. Porter came up with a set of five factors/forces that includes substitute products, bargaining power of customers, bargaining power of suppliers, entrance barriers and rivalry among existing firms in the industry. Michael Porter's FiveForces have become a measuring tool for evaluating a industrys profitability. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to revise these competitive forces in a way that improves the position of the organization. Porters model...

...2012 STRATEGIC MANAGEMENT
Discuss Porter’s fiveforces theory of market competition. How does strategic group analysis provide a refinement to the fiveforces model?
Key words here are:
-discuss
-Porter’s fiveforces
-strategic group analysis
-refinement of it(improve it yaani k extra benefits of strategic group analysis compared to fiveforces)
Strategic decisions have always been a vital part of business as ever since their conception but the word strategy is barely mentioned pre 1960s. However, the concepts of strategy were linear and largely inefficient before the 1980’s and Micheal Porter’s contribution to modern businesses. He presented many theories and “models” on how to improve decision making and gain competitive advantage in the market.
One of these models was the “fiveforces analysis of industry attractiveness” which said the “attractiveness” i.e. profitability of an industry or market is based on five factors which are:
Threat of new entrants
l
Bargaining power of supplier - Rival firms(competition) - bargaining power of buyers
l
Substitute firms(if you make butter, they
make margarine and might steal your customers)
What this means is the industry should be judged or analyzed by viewing these five factors and comparing them to find out how...

...﻿
Porterfiveforces
Prepared by Dean
Content
1. Introduction
2. Explanation of the Porter Model
3. Portersfiveforces Automobile industry
4. Conclusion and weaknesses
1. Introduction
Audi History
It all began with August Horch, one of Germany's pioneering personalities automobile engineers. He set up business on his own in 1899, establishing Horch & Cie. Motorwagen Werke in Cologne on November 14 of that year. August Horch left the company in 1909 and immediately established a second car company in Zwickau. Because his surname was already in use and was protected by trademark, he chose its Latin translation for the new company. So "horch!" – or "hark" – became "audi!". The Audi brand established a tradition of sporting achievement from the very outset. Thanks to his victorious involvement in the Austrian Alpine Runs between 1911 and 1914, August Horch succeeded in making Audi internationally known within just a few years.
The Audi four-ring emblem symbolises the merger in 1932 of four previously independent motor-vehicle manufacturers: Audi, DKW, Horch and Wanderer. In 1969 Auto Union GmbH amalgamated with NSU Motorenwerke AG. [1]
Audi Financial situation
The revenue in 2013 is 49,880 ERU million, which is higher than that in 2012(48,711 ERU million). Operating income in 2013 is 1,952 ERU million, which is also...